Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

L2JTU JIUL LUI Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of

image text in transcribed

L2JTU JIUL LUI Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wishes to purchase 53,000 baseball card packs for a special promotional campaign and offers $0.34 per pack, a total of $18,020. Rec - Cardz's total production cost is $0.54 per pack, as follows: E: (Click the icon to view the cost information.) Rec - Cardz has enough excess capacity to handle the special order. 0 Data Table - X Read the requirements. $ Requirement 1. Prepare a differential analysis to determine whether Rec-Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues $ 18,020 Expected increase in expenses Variable manufacturing cost: 53,000 packs x $ 0.24 (12,720) Expected increase in operating income $ 5,300 Variable costs: Direct materials Direct labor Variable overhead Fixed overhead Total cost 0.11 0.04 0.09 0.30 0.54 $ Print Done Decision: Accept the special sales order. Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Rec-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.34 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues i Requirements - X Expected increase in expenses: Variable manufacturing cost: packs x L 1. Prepare a differential analysis to determine whether Rec-Cardz should accept the special sales order. Fixed manufacturing costs 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz will spend $5,700 to develop this hologram, which will be Expected increase in total expenses useless after the special order is completed. Should Rec-Cardz accept Expected in operating income the special order under these circumstances, assuming no change in the special pricing of $0.34 per pack? Choose from any list or enter any number in the input fields and then click Check Answer. Drint Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago